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TMI Blog2019 (3) TMI 645X X X X Extracts X X X X X X X X Extracts X X X X ..... at the payments have not been made by cheque but have only proceeded on the basis of presumption. In the present case no disallowance of expenses on account of material is called for. We, therefore, direct to delete the disallowance on account of material purchased of ₹ 11,13,403/-. As far as the disallowance of labour charges is concerned before us the AR has not pointed out any fallacy in the findings of CIT (Appeals) and therefore to the extent of disallowance of labour expenses, we find no reason to interfere with the order of Commissioner of Income Tax. - Appeal of assessee is partly allowed. - ITA No.108/RPR/2016 - - - Dated:- 11-3-2019 - Shri Anil Chaturvedi, AM And Shri Partha Sarathi Chaudhury, JM For the Assessee : S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AO on adhoc basis and rejecting the explanation. Prayed to delete adhoc disallowance maintained at ₹ 11,13,403/-. 3. That the learned Commissioner of Income Tax (Appeals) further erred in directing the learned Assessing Officer to examine brokerage expenses claimed at ₹ 1,23,715/-. Submitted that all the expenses are for business purpose. Prayed to allow ₹ 1,23,715/-. 3. Before us, at the outset that the Ld. AR submitted that the assessee does not wish to press ground No. 3. In view of the aforesaid submission, ground No. 3 of the assessee is dismissed as not pressed. 4. Ground Nos. 1 and 2 being interconnected are considered together. 5. During the course of assessment proceedings, Assessing Offi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wance of ₹ 22,26,806/-. Aggrieved by the order of Assessing Officer, the assessee carried the matter before the CIT(A). The CIT(A) after considering the submissions of assessee with respect to the material purchased upheld the disallowance to the extent of 10% and as far as labour charges expenses are concerned, he upheld the order of Assessing Officer. Aggrieved by the order of Ld.CIT(A), assessee is now in appeal before us. 6. Before us, Ld. A.R. reiterated the submissions made before Assessing Officer and Ld.CIT(A) and further submitted that the disallowance has been made on the basis of presumption without pointing out any instance of the payment being bogus. He further pointed to the list of expenses incurred on purchase of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t to disallowance of expenses for purchase of materials and labour expenses. With respect to the purchase of materials, we find that the Assessing Officer in the order has accepted that the material purchased was essential requirement for development of land and building and in view of the discrepancies noted he made an adhoc disallowance of 20% which was reduced to 10% by Commissioner of Income Tax (Appeals). Before us the ld. AR has placed the summary of material purchased which reveals that it contains the details of suppliers, bill number, material amount and quantity. We further find that the payments have been made by cheques. Before us Revenue has not pointed any evidence to show that the payments have not been made by cheque but hav ..... X X X X Extracts X X X X X X X X Extracts X X X X
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